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Patterns of Advanced Technology Adoption and Manufacturing Performance: Employment Growth, Labor Productivity, and Employee Earnings

Author

Listed:
  • David N. Beede

    (U.S. Department of Commerce, Economics and Statistics Administration, Office of Policy Development)

  • Kan H. Young

    (same)

Abstract

Previous studies of the relationship between technology adoption and performance in U.S. manufacturing plants take the number of technologies in use as a measure of technological sophistication. These studies generally find a positive monotonic relationship between technology counts and employment growth and earnings and productivity levels among otherwise similar plants. However, the technology count approach masks potential differences in performance among plants that adopt the same number, but different combinations, of technologies. The present study advances earlier work by examining how plant performance is associated with specific technology combinations. The analysis yields several important insights. First, there is enormous diversity in technology adoption patterns. Second, specific technology combinations (e.g., computer aided design combined with numerically controlled machines vs. computer aided manufacturing combined with numerically controlled machines) generally have different degrees of association with plant performance, even among the plants that adopt the same number of technologies. Third, plants that integrate fabrication with assembly operations appear to use advanced technologies more effectively than those engaged in only fabrication or assembly.

Suggested Citation

  • David N. Beede & Kan H. Young, 1996. "Patterns of Advanced Technology Adoption and Manufacturing Performance: Employment Growth, Labor Productivity, and Employee Earnings," Development and Comp Systems 9604001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:9604001
    Note: Type of Document - MS Word; prepared on IBM PC; to print on HP LaserJet; pages: 38 ; figures: none
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    References listed on IDEAS

    as
    1. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-1175, September.
    2. Robert Mcguckin & Mary Streitwieser & Mark Doms, 1998. "The Effect Of Technology Use On Productivity Growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(1), pages 1-26.
    3. Mark Doms & Timothy Dunne & Kenneth R. Troske, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 253-290.
    4. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290, National Bureau of Economic Research, Inc.
    5. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE.
    6. Timothy Dunne & James A Schmitz Jr., 1992. "Wages, Employer Size-Wage Premia and Employment Structure: Their Relationship to Advanced-Technology Usage at U.S. Manufacturing Establishments," Working Papers 92-15, Center for Economic Studies, U.S. Census Bureau.
    7. Doms, Mark & Dunne, Timothy & Roberts, Mark J., 1995. "The role of technology use in the survival and growth of manufacturing plants," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 523-542, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Emin Dinlersoz & Zoltan Wolf, 2018. "Automation, Labor Share, and Productivity: Plant-Level Evidence from U.S. Manufacturing," Working Papers 18-39, Center for Economic Studies, U.S. Census Bureau.
    2. Robert Mcguckin & Mary Streitwieser & Mark Doms, 1998. "The Effect Of Technology Use On Productivity Growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(1), pages 1-26.
    3. Feller, Irwin & Nelson, Jon P., 1999. "The microeconomics of manufacturing modernization programs," Research Policy, Elsevier, vol. 28(8), pages 807-818, November.
    4. Gómez, Jaime & Vargas, Pilar, 2012. "Intangible resources and technology adoption in manufacturing firms," Research Policy, Elsevier, vol. 41(9), pages 1607-1619.
    5. Nathan Musick, 1998. "Heroic Plants: Persistently Rapid Job Creators in the Longitudinal Research Database - Their Distinguishing Characteristics and Contribution to Employment Growth," Industrial Organization 9811001, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments

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